COAL FREIGHT INCREASES

Star (Christchurch), Issue 16471, 6 July 1921, Page 2

COAL FREIGHT INCREASES

(Special to the “Star.”) , DUNEDIN, July o. Attention having been drawn to increases in freights on. coal from Westport and Greymouth, a representative of the “Otago Daily Times ’’ asked Mr C. Holdswortli, managing director of til© Union Steam Ship Company, whether ho would like to pass any comment on the matter. Mr Hold?worth said that the necessity for increases had been freely explained to the coal mining companies for whom they carried during tho course of negotiations. Tt would, however, be only fair if the reasons for the advances were also placed before the public. Mr Holdswortli stated that the rates of freight charged up to the end of last month were not nearly sufficient to meet the expenses of the steamcfs employed in the West Coast service. Their operations for last year left a heavy loss on actual running expenses, without making provision for depreciation of steamers, and the next six months resulted in an even larger deficit. Unfortunately expenses bad not yet reached the “peak,” and bunker coal supplied in New Zealand bad within the last few weeks increased in cost about 40 per cent, according to description and quality of coal. The cost of provisions was the only item showing a tendency to fall, but w ages of labour ashore, overhauls, etc., and, as stated before, bunker coal, showed no signs of coming down. In these circumstances the increases were absolutely necessary, and for the next twelve months the coal companies had agreed to advances varying from 2s 9d per ton to Wellington and Lyttelton to a maximum of 5s per ton to a roadstead port, where dispatch continued very poor, the rates varying with mileage and dispatch obtainable. The directors regretted that such increases were necessary and w-ould reduce the rates when the cost of operating steamers came down.

To demonstrate how the multifarious costs connected, with the running of steamers had increased since 1914 Air Holdswortli showed the reporter figures which had been taken out relative to the expenditure required to keep the vessels in commission. Six vessels on the West Coast were tabulated to show comparative costs in 1914 and 1921. The figures were rather alarming. The increases in overhauls alone showed an advance of approximately 3(10 per cent as compared with 1914. The cost of working cargo on the six vessels had increased roughly hv 140 per cent. The other many expenses had also increased in relative ratio.